Asked by Anonymous
Assume that you are an NBA team owner who wants to build an arena with a budget of $400 million. You will provide $200 million of your own funds, but must finance the remaining balance. Calculate your total loan payment based on the following information: A bank is willing to lend you 60% of the remaining balance at 5% interest. You have also been offered a corporate bond that will cover the remaining 40% at 6% interest.